Trade Logic Unlocked

Theta in Disguise

Trade Logic Unlocked

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

We like to sell options because they yield positive theta, whereas buying options would result in negative theta. This effectively boils down to whether or not time is working for us or against. Well buying options, something we might do in low IV environments with a debit spread, doesn’t automatically lead to negative theta. As we see today, there are times where we can actually generate positive theta from these trades.

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